In 2010 the former Massachusetts Community Development Finance Corporation (CDFC)
was merged along with Economic Stabilization Trust to the create the Massachusetts
Growth Capital Corporation (MGCC), a quasi-public economic development agency,
provides debt and equity financing for small business and real estate projects
in targeted low-income and moderate-income communities throughout the Commonwealth.
The Mission of the Massachusetts Growth Capital Corporation is to create and preserve
jobs at small businesses, women and minority owned businesses, and to promote economic
development in underserved, gateway municipalities and low and moderate income communities.

CEDAC is an independent state agency created by the Legislature in 1978 to increase the
amount of affordable housing and foster revitalization of economically distressed areas by
providing a range of development assistance programs to nonprofit development corporation
throughout the state. Programs include: Technical Assistance Advances
which are low-interest loan to cover predevelopment costs, Front Money Loan
which provide additional financing for pre-devlopment costs, Site Control Loans
which allow nonprofit developers to secure privately-owned sites, Spot Technical
Assistance which are expedited small loans allowing staff review rather than CEDAC board
review, and the Child Care Capital Investment Fund which provides
technical assistance and term loans to metro Boston area child care providers to finances
facilities' related capital spending.

MassHousing is a self-supporting state agency which
finances the construction, purchase, and rehabilitation of housing in Massachusetts. Loan
programs designed to stimulate the construction of mixed-income rental housing, to assist
in the preservation of the Commonwealth's existing housing stock, and to provide home
ownership opportunities for low and moderate-income households are financed through the
sale of tax-exempt securities. Subsidized apartments are subject to
agency regulations governing household income and family size. Call MHFA for a list
of developments. Through the Lead
Paint Abatement Program, known as "Get the Lead Out", the MHFA will provide
reduced rate loans of up to $15,000 to abate lead paint in private residences. Loans are
available at zero, five, and 8.5 percent interest rates to applicants who meet certain
income and dwelling requirements. The Mortgage Insurance Fund
program provides required private mortgage insurance on all mortgages involving down
payments of less than 20% of the home purchase price. The Homebuyer Counseling Program
educates first-time buyers in the complexities of the home buying process and prepares them
for the responsibilities of ownership. The latest program, FreshRate,
designed to make home ownership a reality for families who have enough income to make
payments but have not been able to set aside enough money for the down
payment, is an affordable loan program offering 4% of the loan amount for down payment and
closing cost assistance to those who qualify. Various Home Improvement Loans are available,
such as: improving sewage disposal systems (including septic systems); enhancing basic living
conditions, safety, or energy efficiency; and bringing a home up to standards required by
state or local building codes. For all of these programs, homeowners must apply
through the local rehabilitation agencies. Call MHFA for a list of these local
agencies.

The Massachusetts Housing Partnership was created in 1985 to increase the
availability of affordable housing through a working collaboration among the public,
private, and non-profit sectors. MHP effort centers on the following activities: producing
affordable housing for those in need; managing local growth through local policies which
also provide for affordable housing opportunities; providing specialized housing
opportunities for persons with special needs; and reclaiming abandoned and vacant
properties. In 1990, the Legislature created the MHP Trust Fund overseen by a seven-member
board, thus removing it from under the direct control and jurisdiction of the Department
of Housing and Community Development. Partnership Funds
One of the most unique aspects of the MHP is its ability to assemble resources, both
new and existing. The MHP is a public/private enterprise established in 1985 to develop
and preserve affordable housing through a working collaborative with local housing
partnerships. Technical Assistance Funds of up to $50,000 are available to municipalities,
non-profit and for-profit developers, professional corporations, community groups, tenant
organizations, builders, and others with the capacity to generate innovative, new
affordable housing ideas. Soft Second Program
MHP administers the Soft Second Program. The Soft Second Program is a shallow interest
rate subsidy that makes affordable first-time homeownership possible for low and
moderate-income residents. The program provides for smaller mortgage payments by making it
possible for the homebuyer to take a second mortgage. Consequently, the homebuyers first
mortgage becomes smaller where the first mortgage will be for only 75 percent of the total
purchase price. The homeowner will only have to make interest payments on the second
mortgage for the first ten years, with principal and interest payments beginning in the
11th year. The program will then give the homeowner a subsidy loan that covers 75 percent
of the interest payments on the second mortgage for the first five years. After the fifth
year, the subsidy will decrease until approximately the ninth year when the homeowner will
completely takeover the payments. A joint venture of MHP and the Department of
Housing and Community Development, the program is available through participating local
banks in more than 120 communities.

With the consolidation of the Massachusetts Government Land Bank and the
Massachusetts Industrial Finance Agency, MassDevelopment becomes the Commonwealth's primary source of public
financing for economic development projects. The agency's programs include the Predevelopment
Assistance Funding Program which seeds community development by funding
pre-construction analyses associated with early-stage projects. The agency also
provides direct loans and loan guarantees for projects with
clear community development or job creation/retention potential. It is the
Commonwealth's largest issuer of tax-exempt and taxable bonds
for manufacturers, environmental businesses, health and elder-care providers as
well asfor nonprofit and educational institutions. A Tax-exempt
Lease/Purchase Financing Program is available for industrial
development and other non-profit agencies.
In addition, MassDevelopment administers a variety of targeted loan funds
including the Emerging Technology Fund, which is a useful
financing tool for economic growth for technology-based communities,and
the Export Finance Guarantee Program, which is designed to
enhance the overall scope of export activities in the state while helping
exporters expand and compete in the global marketplace. Finally, the agency
provides concentrated financing and technical assistance to large-scale
real estate development projects across the state. There are several regional
offices, call or visit their website for the nearest location.